About two dozen states sued the Trump administration Tuesday over the dismantling of AmeriCorps, the 30-year-old federal agency for volunteer service, and over the cancellation of hundreds of millions of dollars in grant funding for state and community projects across the U.S.

The federal lawsuit was filed against the agency and its interim head by Democratic state officials. It alleges that President Donald Trump’s cost-cutting efforts through the Department of Government Efficiency illegally gutted the agency created by Congress and reneged on grants funded through the AmeriCorps State and National program, which was budgeted $557 million in congressionally approved funding this year.

The agency oversees a number of programs that dispatch hundreds of millions of dollars and tens of thousands of people to serve in communities across the country.

“In an attempt to dismantle the agency, the Trump administration and its DOGE demolition team made abrupt and drastic cuts to staff and volunteers and terminated grants,” said Colorado Attorney General Phil Weiser in a statement. “We are suing to stop this illegal dismantling of AmeriCorps and preserve the spirit of community service in our state and nation.”

At least 85% of AmeriCorps staff were put on administrative leave this month, according to the complaint, with at least some notified last week that they would be let go because of a reduction in force.

The White House on Tuesday pointed to improper payments reported by AmeriCorps, totaling over $40 million in 2024 and attributed to insufficient documentation from grantees, calculation errors and miscoded expenses.

“President Trump has the legal right to restore accountability to the entire Executive Branch,” Anna Kelly, White House deputy press secretary, said in an email.